Skip to main content
7:00 pm
this is al jazeera america, live from new york city. i'm tony harris with a look at today's top stories, arctic freeze taking ahold of most of the country right now. making it feel in some places like 50 to 60 below. folks are being encouraged to stay inside or go to a shelter if they need help. the senate is back to work, they confirmed janet yellen as the next head of the feds. the u.s. supreme court has put a temporary stop to same-sex marriages in utah, the nation's
7:01 pm
highest court says the marriages will come to a halt to give the state time to respond to a law that allows them. the iraqi military says it is ready to reclaim fallujah. and the pennsylvania woman know as jihad jane has been sentenced in ten years in prison. she was accused of being involved in a murder those are your headlines. i'm tony harris. "real money" is next on al jazeera america. ♪ america's energy boom is is causing growth, but putting train on america's
7:02 pm
infrastructure. plus a doctor makes a case against extending unemployment benefits. and what the brave new retail world means for your bottom line. i'm ali velshi, this is "real money." ♪ this is "real money," you are the most important part of the show so join our live conversation for the next half hour on twitter, and on facebook. all right. the coldest temperatures in almost two decades in parts of the mideast or northeast, have me thinking a lot about heat. so i want .to take a hard look at america'sen by boom and what it means for our country, good and bad. here is what the boom looks like. in the last fy years, oil
7:03 pm
production has surge to 8 million barrels per day. the energy department predicts that will increase all the way through 2016. that's thanks in large part to frac-ing in which drillers blast water and sand into shale in places like north dakota and texas. the oil and gas that is extracted is helping to shrink the u.s. trade deficit, that's boosting the gdp by an estimated 1 minute 5 percentage points. more oil and gas drilling means more jobs. government data show the number of oil and gas jobs, the blue line, has jumped by 80,000 in the last decade to 200,000, the number of indirect jobs that support industry, that's the other line, totaling about 300,000. the mernt role um inn ought to has a brood broader definition, claiming item ployed directly
quote quote
7:04 pm
and indirectly 9.8 million people in 2007. even if that is overstated, which it might be, it is still a lot. but more oil and gsa production is bringing problems. some local communities report increased accidents as huge trucks rubble day and night over america's roads. and while it may be doing wonders for america's independence, all of that production is overwhelming this country's infrastructure. and that is pushing more oil on to rail cars. this is a growing trend that has had recent damage consequences. in the united states the transportation of oil by rail jumped 24% from the year
7:05 pm
earlier. u.s. railways now transport nearly 10% of america's crude oil output or around 800,000 barrels per day, and that has increased the likelihood of rail accidents in both the u.s. and canada. in july a 74-car freight train derailed in the quebec town, and the explosion killed almost 50 people and destroyed 30 buildings in the town's center. in november a train derailed and exploded in pennsylvania. 11 cars burnt to a crisp. and in late december, a 110 freight train in north dakota derailed causing a massive fireball that forced local authorities to evacuate residents from their homes.
7:06 pm
all of that oil by rail has overwhelmed smaller branch lines which are often not as well maintained. the fleet of tankers is also aging with thin metal skins that pierce easily during derailment. and it is also more expense if than pipelines. but with the appetite for pipeline in question, that extra oil has to be moved somehow, and rail is picking up the slack. rail is hauling 20 times more crude than they carried back in 2000 #, but it is only the beginning according to jeff reubin. he say oil by rail may be in the beginni beginnings. he was one of the first economists to accurately predict soaring oil prices back in the year 2000. he joins us now.
7:07 pm
good to see you, jeff. >> good to see you. >> oil by rail is just not regulated, and we are piling more oil on to rail cars daily. >> that's right. and i think, you know, one of the unintended consequences of environmental opposition to pipelines on both sides of the border has been to put oil on rail. of course their intention was to keep oil in the ground, whether we're talking about the bakken or the oil sands, but the industry's response has really gone back in time, when of course rail was the key way of moving oil. as you point out, rail is a much more expense if way of moving oil, and certainly a much more hazardous way, particularly when it comes to moving the very flammable volatile, light oil from the bakken, and i think de
7:08 pm
facto, we have gone from bad to worse in how we're moving oil. and that's really the achilles heel, is we don't really have the infrastructure to move it. >> what is the solution? should we be building more infrastructure? >> well, again, there doesn't seem to be an appetite for pipelines, and remember, to fulfill the production goals of either the people in the shale place or oil sands we're going to need four to five keystone excels. if you are going to see go from 2 to 5 million, and i just don't think there is the public appetite for four or five keystone xl's, but that is what we would be talking in terms of
7:09 pm
building the infrastructure needed to facilitate the production people are talking about. >> but much of the oil traffic we're talking about on these rail cars is not actually destined for use in america. >> that's right. and of course the fraccers have wrapped themselves around the flag of energy independence, the u.s. in 1975, had more crude, but there are no restrictions on the exportation. a lot of that shale is ending up as gasoline and diesel. and sent to some of the countries that america used to import from. the u.s. is exporting a record 3 million barrels aday, much of that coming from the shale oil
7:10 pm
brought by rail car. >> thank you for your analysis. it's not even that americans are getting the benefit for the risk we're taking. >> yeah, and to my thinking that would certainly change the equation, because we're talking about motorists in nigeria and venezuela, filling up on oil from america, and i think it's one thing to allow rail cars to move oil to reduce america's dependence on potentially host foreign oil suppliers but that -- equation changes when we are using it to support them. >> jeff, thank you. >> thank you. as we said earlier the u.s. is dealing with some crippling temperatures.
7:11 pm
diane -- wow you look hold, how are you holding up out there? >> i'm barely holding up here. we saw 16 below zero here in chicago, with wind chill around 40 and 50 below zero, that forced the closure of schools all over illinois, and other states. the city of chicago has crews out working overtime, some of these crews are working double time clearing off streets so that is going to cost the city of chicago a bundle. it already has some budget issues. i talked to people's gas and they were expected to see natural gas usage at its highest level in ten years. so that could hit some consumers in the pocketbook if this lasts too long. fortunately, we're seeing fairly cheap natural gas prices, so
7:12 pm
hopefully that won't hit consumers too badly. >> diane try to stay warm. how best to help americans who have been out of work for more than six months, why some say extending unemployment benefits is not the way to do it. and technology is changing the way we shop and the way we do business. one of the top minds joins me to look at the future of your shopping experience. those stories and as "real money" continues.
7:13 pm
this week the senate is expected to vote on a proposed three-month extension of long-term unemployment insurance benefits. that move would help the roughly
7:14 pm
1.3 million americans who have been out of work for 27 weeks or more. the program was created under george w. bush to extend state benefits, but expired on december 28th because congress couldn't agree on the terms of the extension. it has a $25 billion annual price tag, and conservatives fear an extension would dissuade people from looking for works. long-term unemployment is a massive problem in this country with an estimated three job seekers competing for each of the 4 million job openings out there right now. let's speak to a man who most recently became one of the most senior advisor to mitt romney. he is the director of economic policy at conservative think
7:15 pm
tank american enterprise institute. thank you for being with us? . >> thank you for having me. >> you could look at the argument that the idea -- and i have heard you say this -- that the people are out of work for so long is really a smear on their ability to get a job, and you think that that's what is holding a lot of people back. sdmrrjs right, and let's be here that these are folks who desperately need the help of all of us, and government too. they are having a really, really hard time getting job interviews. they get kind of a stain on their resume that really sticks out because they have an empty spot. so there have been a lot of people who have been encouraged by being unemployed by having really long term benefits. so we need to not leave these people completely to their own
7:16 pm
devices because they are going to have a really hard time connecting, but we need to do more than just throw money at them. this is such a serious problem, we need to be creative about what we do to help them, including maybe thinking about subsidies for employers who higher the long-term unemployed. but just throwing money at it i think is a bad idea. >> this is why i love having you talk about it, because you bring these nuances and shades into it. but the discussion in congress is not all that shaded. either they get their benefits or they are getting switched off. >> right. and if you extent the benefits, there is literature that people tend to get a job right away or after their ui benefits expire.
7:17 pm
so you encourage people to basically stay unemployed for a while. and you need to think about a design that doesn't encourage them to be long-term unemployed. even now, the folks that might see their benefits extended, i would prefer to give them a lump sum of cash. whatever the average repeat might be, just give them a check for that right away, and then let them look for a job, the problem is they only get the check if they basically look for a job but don't find one. >> i want to put up a chart, this is just the jobs listed versus the population, and if you look at that downward trend since that emergency aid was put into place in 2008, i don't know what that says to you. does that say to you those jobless benefits -- that chart
7:18 pm
shows the number of people for every available job. at the moment it's about three. so no matter what the nuances are, isn't it the case that there are still too many people and too few jobs. for sure the unemployment rate is high, but there are a lot of vacancies out there, and it is really the matching that is messed up. i have labor economists who tell me the problem is those who lost their jobs a long time ago. it is those folks that have been out of work for a year who have still having a hard time finding a job. >> kevin good to see you. >> thanks, ali. today on twitter and facebook i have been asking is congress right not to extend long-term benefits . . .
7:19 pm
tell me what you think about tweeting me or leave us a comment on facebook. in an historic vote, janet yellen has been confirmed as the head of the fed. patricia sabga has a closer look at our next federal reserve chair. >> reporter: janet yellen cements her place in history, becoming the first woman to head the federal reserve. >> under the wise and skilled leadership of chairman bernanke -- >> reporter: she takes over for the current chair at the end of this month. but in her lead up, she has already put her stamp on fed policy. >> she has brought into t
7:20 pm
the -- bernanke fed. >> a respected economy and labor market scholar, her insider knowledge of the fed goes back more than 30 years, having worked her way up from researcher to the top job. along the way she served as president of the san francisco federal reserve bank. markets have rallied on the day she became the front runner, and when president obama officially nominated her. the process of unwinding the stimulus was set in motion under bernanke. but that still leaves yellen the forbidable task of continuing to phase out the fed's bond-buying program without derailing the economic recovery.
7:21 pm
patricia sabga, al jazeera, new york. >> she will take over when ben bernanke's second term expires. up next one of the top minds in the retail industry gives a glimpse of what is ahead. a copier.
7:22 pm
7:23 pm
lisa fletcher joins with what is coming up on "the stream." lisa, we hear about legalizing drugs, but it is usually different in different states. >> that's right. and tonight we're breaking it down asking if american's opinions are changing as much as advocates indicate. >> that's going to be interesting. don't miss "the stream" right after "real money." the price of a bitcoin spiked above $1,000, as zinga
7:24 pm
announced it is going to accept the currency. so now you can use fake money to buy fake stuff from video games. bitcoins are not regulated by any banking authority. the value of one bitcoin topped a thousand, but then the rally stalled after china began limbing its use. the world of retail is transforming fast. the forces of change now include shifting consumer habits and new technology. lynn is the original guru. and is the chief operating officer of limited brands.
7:25 pm
he joins us from harvard business school where he is now working. lynn good to see you. >> great to be with you, aly. >> people want to know what a big thing is. and this has been an evolution of combining online and mobile and the retail store experience into one seamless operation. >> there is absolutely no question that we live in a multi-channel world and all of those areas have converged dramatically and the customer wants what he wants when he wants it and the way they want it delivered. >> what have been some of the best examples of retailers that are ready for the next several years in the way our changing habits are going to be? >> clearly in the in-store environment, apple completely changed the rules of the game for what the in-store experience was all about. they provided an incredibly
7:26 pm
entertaining experience and built a platform that really sets the stage that other retailers have been trying to emulate in a variety of ways. in the online space, amazon continues to be the standard barer, whether it is with the online platform or the evolution to drones that we saw in "60 minutes" a few months ago, jeff baseso, is very clear. it revolves around being obsessively customer focused. it requires you to continue to drive down costs and pass those on to the customer, and to be relentlessly innovative, and while it is a small part of the retile environment today, the estimate is that 50% of
7:27 pm
transactions will be on a mobile device ten years from now. >> there is one that is interesting, uber, the car service. they have something called dynamic pricing, and will we see more of that? if it's a rain day, and i try to get uber car, it is going to cost me more. >> there is no question dynamic pricing has really stimulated a human outcry from its passenger base. on the other hand the alternative was to wait in the rain and not have a taxicab. dynamic pricing is here to stay, i think. they need to do a better job of letting the passengers and consumers know about it, but i think it is good going forward. >> lynn drop in next time you
7:28 pm
are in town, we'll have this conversation in person. >> good to be with you ali. >> my final thoughts are for drivers struggling in driving in so many parts of the country. i got one response from a viewer tell me about a personal experience in which he rear ended a car in a parking lot. he thought about paying it, but decided to run it through the insurance. a passenger later claimed to have whiplash from the accident, now by having reported that relatively small claim to his ininsurer, that viewer was covered. in the case of a car injury, personal injury is a bigger
7:29 pm
consideration than damage to your property. on tuesday a man who knows banks explains why america's prosperity depends on keeping big banks big. i'm ali velshi. thanks for joining us. ♪
7:30 pm
hi i'm lisa fletcher, and you are in "the stream." was the time fit the crime when it comes to drugs? we look at changing policies versus sentencing realities. ♪ digital producer, wajahat ali is here, bringing in all of your feedback during the show. when we talk about policies there is always confuse between the difference between decriminalization and legalness, so i'm tapping into

tv
Real Money With Ali Velshi
Al Jazeera America January 6, 2014 7:00pm-7:31pm EST

News/Business. The impact of jobs, housing, healthcare, education and savings on the economy. New. (CC) (Stereo)

TOPIC FREQUENCY America 12, U.s. 7, Us 4, Janet Yellen 3, Chicago 3, Lynn 3, Lisa Fletcher 2, North Dakota 2, Tony Harris 2, Pennsylvania 2, Feds 1, The Nation 1, United 1, Yellen 1, Ahold 1, Ben Bernanke 1, Jeff Reubin 1, Bakken 1, George W. Bush 1, Pierce 1
Network Al Jazeera America
Duration 00:31:00
Scanned in San Francisco, CA, USA
Source Comcast Cable
Tuner Channel v107
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 704
Pixel height 480
Sponsor Internet Archive
Audio/Visual sound, color


disc Borrow a DVD of this show
info Stream Only
Uploaded by
TV Archive
on 1/7/2014
Views
212